Data analysis SaaS Workiva files for a $100 million IPO

Workiva, which offers a SaaS platform used by companies to manage the SEC filing process, filed on Friday with the SEC to raise up to $100 million in an initial public offering.

Business
Workiva's cloud-based software, Wdesk, allows public, private and government enterprises to collaboratively compile, analyze and submit filings in compliance with SEC requirements. The company offers its product in response to increasing regulation from legislation (Dodd-Frank and Sarbanes-Oxley), government agencies (SEC, Federal Reserve, FDIC, DOE, EPA) and internal management oversight. In addition to filing 10-Ks, 10-Qs and proxy statements, Workiva also provides XBRL tagging services and more recently incorporated a wider suite of reporting tools focused on risk, sustainability, executive-level reports and enterprise risk management. The company claims that its annual market opportunity for existing products is $5.4 billion across the US, Canada and Europe.

Workiva generates 80% of its revenue from subscriptions and related support services, and contracts typically range from 3 to 36 months with quarterly or annual billing. The remaining 20% of revenue is mainly derived from XBRL tagging, an additional service it offers. Workiva had 2,176 customers as of September 30, with 60% of both the Fortune 500 and Fortune 100, including The Coca-Cola Company, Wal-Mart, Cardinal Health, Boeing, Credit Suisse, Google and Chevron. Its ten largest customers make up 5% of revenue. The company's subscription revenue retention rate was 97% as of September 30, and 108% including additional seats purchased by existing customers.

Primary shareholders include Bluestem Capital, co-founders and management. Matthew Rizai has served as CEO since he co-founded the company in 2008, while CFO Stuart Miller joined in April after serving for 15 years as founder and Managing Director at Chicago-based Colonnade Advisors.

Financials
Revenue increased 34% to $83 million during the nine months ended September 30, 2014, primarily from a 20% increase in new customers. Gross margin remained flat at 71%. Loss from operations widened 21% to $27 million. Primary expenses include R&D (39% of revenue) and sales and marketing (48%). The company had $52 million of deferred revenue at quarter-end, a 113% increase over last year.

The Ames, IA-based company, which was founded in 2008 and booked $106 million in sales for the 12 months ended September 30, 2014, plans to list on the NYSE under the symbol WK. Workiva initially filed confidentially on September 3, 2014. Morgan Stanley and Credit Suisse are the joint bookrunners on the deal. No pricing terms were disclosed.